Peso falls further on concerns over prolonged eurozone debt crisis

MANILA, Philippines—The peso fell further on Wednesday as investors manifested heightened concerns on the likelihood of a prolonged debt crisis in the eurozone.

The local currency closed at 43.97 against the US dollar, down by 13 centavos from 43.84:$1 on Tuesday.

Intraday high hit 43.85:$1, while intraday low settled at 44.02:$1. Volume of trade amounted to $699.78 million from $750.55 million previously.

Traders said the consensus that the debt crisis in the eurozone would not be resolved anytime soon, and might even worsen in 2012, has prompted foreign fund owners to liquefy their assets and hold on to their cash.

Assets from emerging markets, such as the Philippines, are among those being dumped in favor of liquidity.

The Philippine government has set a goal for its economy to grow by 4.5 to 5.5 percent this year, but government officials have admitted that the target may no longer be achieved.

In the first three quarters of this year, the economy grew by 3.6 percent.

The lower-than-desired growth in the third quarter is blamed on the anemic performance of the global economy, which is being dragged down partly by the eurozone and the sluggish growth of the United States.

The crisis in the West has reduced export earnings of countries like the Philippines.

Traders said the outlook of a prolonged crisis in the eurozone in 2012 has been seen by investors as sufficient to pull down again export earnings of emerging markets.